Rare earth elements (REEs), uranium and other critical minerals producer Energy Fuels delivered meaningful progress across its uranium and rare earth businesses in the third quarter ended September 30, with higher realised uranium prices having supported improved margins, while the company continued to advance its uranium production pipeline, president and CEO Ross Bhappu says.

The company sold 320 000 lb of triuranium octoxide (U3O8) at a weighted average realised price of $88.90/lb for total uranium revenues of $28.4-million.

Spot sales came to 50 000 lb of U3O8 for revenue of $4.5-million at a weighted average realised price of $89.50/lb, while long-term contract sales were 270 000 lb of U3O8 for revenue of $24-million at a weighted average realised price of $88.79/lb.

Revenue also included $400 000 from the sale of finished neodymium/iron/boron (NdFeB) alloys from the company’s Korean Metals Plant (KMP) during September.

In August, the company completed the acquisition of Australian Strategic Materials (ASM), an Australia-based critical materials company with REE mining, metallisation and alloy processing assets.

These assets include the KMP, which currently manufactures REE metals and alloys at commercial scale.

Energy Fuels reported a net loss of $52.4-million ($0.20 a share) for the period.

The loss was driven primarily by $35.3-million of non-cash, unrealised mark-to-market losses on its marketable securities portfolio driven by higher market interest rates that reduced the fair value of the company’s interest-bearing debt securities, which was partially offset by $9.4-million of cash interest income from its marketable securities portfolio.

The weighted average realised price per pound of U3O8 sold also rose for the third consecutive quarter, increasing 10% from the second quarter and 27% from the first, while operating costs per pound and cost of goods sold remained steady.

As of September 30, the company’s working capital was $932.3-million, including $76.4-million of cash and cash equivalents, $779.5-million of marketable securities (comprised primarily of interest-bearing securities and uranium equities), $26.9-million of trade and other receivables, and $90.3-million of inventory.

Energy Fuels continues to advance its pending acquisition of Vacuumschmelze GmbH & Co and its subsidiaries (VAC), including seeking required regulatory approvals.

Upon completion, the acquisition is expected to advance the company’s strategy of creating a fully integrated Western-allied REE supply chain.

VAC is the largest producer of REE magnets in the world outside of China and Japan and operates facilities in Sumter, South Carolina; Hanau, Germany; and Ulvila, Finland, with a current combined capacity to produce 3 500 t/y of magnet block, expandable to 13 500 t/y.

Subject to the satisfaction or waiver of applicable closing conditions, including receipt of required regulatory approvals, the company currently anticipates closing the VAC acquisition in early 2027.

In July, Energy Fuels approved the start of its planned expansion of the Phase 1 heavy REE facility at the White Mesa Mill, in Utah, to add dysprosium, terbium and other commercial REE capacity.

The expansion is also expected to include a circuit to process mixed REE carbonates, which the company plans to send to the recently acquired KMP to produce rare earth metals and alloys, which, upon the successful acquisition of VAC, are then expected to supply the rare earth permanent magnet manufacturing facilities owned by VAC.

The planned expansion is expected to be completed and commissioned in early 2028, with respect to dysprosium and terbium and later in 2028 with respect to samarium, europium and gadolinium.

Further, Energy Fuels continues to advance the Donald project, in Australia, through its joint venture (JV) with Astron.

The JV recently announced a conditional financing package from Export Finance Australia and the National Reconstruction Fund Corporation for up to A$180-million, as part of a proposed A$200-million senior project finance debt facility for the project, moving the company closer to a final investment decision, currently expected by the end of the year.

The Donald project has received the regulatory approvals required to start construction and to operate the project and, if developed, is expected to provide a long-term, large-scale source of monazite feedstock for the company to process into light and heavy REE oxides at the mill.

The company has the right to 100% of the monazite offtake from the project.

Energy Fuels mined 385 000 lb of U3O8 at its Pinyon Plain, La Sal and Pandora mines during the period, for a total of 1.1-million pounds of U3O8 in the year-to-date.

Inventories of mined ore and mineralised material from the Pinyon Plain, La Sal, and Pandora mines, together with uranium inventories resulting from previous processing and production at the mill, position the company to meet its upcoming long-term uranium contract sales and potential spot sales as market conditions warrant, it says.

During the quarter, the company advanced pipeline projects, including Bullfrog, Roca Honda, Nichols Ranch and Whirlwind.

“The completion of the ASM acquisition was a major strategic milestone, adding commercial-scale rare earth metal and alloy production at our KMP.

“Together with our expanding rare earth oxide capacity at the White Mesa Mill and the pending acquisition of VAC, these capabilities are expected to advance our strategy of building an integrated Western rare earth supply chain, from mineral production through finished magnets.

“We remain focused on disciplined execution and converting these strategic assets into sustainable production, margins and cash flow,” Bhappu comments.